• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 5 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 8 minutes Gazprom fails to exempt Nord Stream-2 from EU market rules
  • 4 hours China wields coronavirus to nationalize American-owned carmaker
  • 22 mins Open letter from Politico about US-russian relations
  • 2 days Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 20 hours Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 28 mins Joe Biden the "Archie Bunker" of the left selects Kamala Harris for VP . . . . . . Does she help the campaign ?
  • 16 hours US will pay for companies to bring supply chains home from China: Kudlow - COVID-19 has highlighted the problem of relying too heavily on one country for production
  • 2 days China's impending economic meltdown
  • 2 days Why Oil could hit $100
  • 5 hours Trump is turning USA into a 3rd world dictatorship
  • 3 days Pompeo upsets China; oil & gas prices to fall
  • 3 days Brent above $45. Holding breath for $50??
  • 2 days Rational analysis of CV19 from Harvard Medical School
  • 2 days The Truth about Chinese and Indian Engineering
  • 2 days What the heroin industry can teach us about solar power (BBC)
A Worrying Sign For Two Major Oil Hotspots

A Worrying Sign For Two Major Oil Hotspots

Two of the world's most…

How COVID-19 Completely Disrupted Car Markets

How COVID-19 Completely Disrupted Car Markets

The Covid-19 pandemic has upended…

Matt Smith

Matt Smith

Taking a voyage across the world of energy with ClipperData’s Director of Commodity Research. Follow on Twitter @ClipperData, @mattvsmith01

More Info

Premium Content

Did OPEC Just Call Time On The Price War?

Thirty-seven years to the day after Benny and Frida from ABBA were married, and the recurring theme of ‘the winner takes it all‘ emerges once more in the global oil market. OPEC Secretary General Abdallah Salem El-Badri is on the wires today after rumors are stoked once more of a potential collaboration between OPEC and non-OPEC members to help speed up the balancing of the global market. He said:

“We have no problem with cooperating with anybody. Even with the United States producers. If they want to talk to us, we are willing talk to them, because now the situation is really affecting almost everybody. United States, OPEC, non-OPEC, everybody.”

Meanwhile, Shell’s CEO Ben Van Beurden said today that it is starting to see the impact of the low price environment: “In May and June we saw the first signs of reduced production. This could entail higher prices, if OPEC at the same time can come to an agreement” in reference to keeping production in check. (This debate will go ‘On and On and On‘).

There has been a lack of economic data out overnight for us to get our teeth into, with the main piece of note out in the U.S. this morning relating to the trade balance. The trade deficit increased to $48 billion versus $41 billion last month, as exports continue to lag. The deficit increased by $4.2 billion to $32.9 billion with China, the highest reported with any country. Nonetheless, a positive attitude again in broader markets is buoying the mood in the crude complex, and black gold, Texas tea is finding support once more. Related: What Will Happen To Oil Prices When China Fills Its SPR?

Onto the next bit of randomness, and this chart via the mighty @johnkempenergy shows that research from the University of Michigan Transportation Research Institute highlights the short-term memory of U.S. motorists. As gasoline prices have spent much of this year $1/gal below the level seen last year, more gas guzzlers are being purchased – meaning the average miles per gallon of a car sold in the U.S. in September was 25.2 mpg, down by 0.6 mpg since August 2014:

(Click to enlarge) Related: Is Russia Plotting To Bring Down OPEC?

In a couple of other interesting tidbits today, Saudi Aramco is pursuing the purchase of some refining assets from Sinopec in China. This seems a mutually agreeable arrangement, as Saudi Aramco is looking to boost ties with Asia, the largest growing demand market, while Chinese President Xi Jinping is encouraging foreign investment in China to boost both trade and transparency.

Meanwhile, deteriorating relations between Russia and Turkey has led to Gazprom’s CEO Alexey Miller announcing that a planned pipeline between the two, known as Turkish Stream, is now seen at a capacity of 32 billion cubic meters (1.1 Tcf) – half that recently envisioned. The reason for the pipeline in the first place is to bypass Ukraine, who Russia currently has faltering relations with.

Finally, in other high-cost producer-related news, Norway is to start tapping its $830 billion sovereign wealth fund (which is supposed to be a nest egg for future generations), as oil-related revenues drop off. Tax revenue from petroleum extraction has dropped 42 percent versus the prior year, and budget spending for next year is projected to outstrip income. Norway’s non-oil deficit continues to increase as the country spends; all the while, crude output drops and revenues fall… Related: Six Reasons Natural Gas Prices Are Staying Down

(Click to enlarge)

By Matt Smith

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News